toggle

AAPL Stock: 502.6 ( 0 )

MacNN News

Report: Apple needs NBC back, and quickly

updated 10:40 am EST, Thu December 6, 2007

Report: Apple needs NBC

Apple needs to work hard towards getting NBC videos back on iTunes, argues a recent report by Forrester Research. Firm analyst James McQuivey claims that when NBC videos dropped from iTunes this past weekend, he warned Apple executives that there was too much at stake. "Don't let the Macgeeks posting angry blogs against NBC fool you," McQuivey's report reads, "The loser here is Apple, which relies on NBC Universal to deliver 30 [percent] of video download sales. Any supposed backlash against NBC will not materialize because NBC has made its content available, for free, on NBC.com and six other major portals sites."

Among those portals is Hulu, which the network recently launched in cooperation with Fox owners News Corporation. Rather than pay for videos, visitors must simply wait through unskippable advertising.

NBC Universal CEO Jeff Zucker has said that he is willing to do business with Apple again, but an NBC spokeswoman notes that no progress is being made. "We're always open to dialogue, but right now there are no active discussions," she explains. The origins of the conflict lay in pricing: while Apple charges low, frequently inflexible amounts for shows and movies, NBC wanted to experiment with bundles, and/or higher prices for premium content.

by MacNN Staff

(33)

TAGS :

iTunes, NBC, video, TV, Apple

Share the Article

Facebook Twitter Delious Slash Dot Digg

toggle

Comments

MacnTX
Fresh-Faced Recruit

Joined: Apr 2004

0

12/06, 10:50am | report spam | close Reply |
Please...

Umm, NBC needs iTunes far worse than iTunes needs NBC. They only have one decent show on that network anyway (The Office) and even that show is beginning to show signs of circling the drain this past season.

jarod
Fresh-Faced Recruit

Joined: Apr 2005

0

12/06, 10:55am | report spam | close Reply |
NBC is a PIG

Greedy filthy scum of the earth pigs.

And for the that may the P2P torrent network annihilate them.

starwarrior
Fresh-Faced Recruit

Joined: Mar 2006

0

12/06, 10:56am | report spam | close Reply |
Same here

Mr Universal has it right. These MBC things are being ripped so fast that all of them will be worthless in a matter of week.

UberFu
Fresh-Faced Recruit

Joined: Oct 2002

0

12/06, 10:56am | report spam | close Reply |
yeah...

NBC.com is *FREE_

*Free - meaning that every few minutes you are forced to watch a 30 second commercial BEFORE you can continue to the next segment_

If I download something from the iTMS - no commercials_ Thanks NBC - but no thanks_ I download and watch content online to avoid the commercials_ Otherwise I should simply watch standard cable and sit thru the commercials on my couch in the living room_

Guest
Fresh-Faced Recruit

Joined: Nov 1999

0

12/06, 10:58am | report spam | close Reply |
Can you say Bittorrent?

NBC Universal has done nothing but drive people to Bittorrent servers. Same content, HIGHER QUALITY (HD), and free. Actually NBC has done far worse to themselves and the industry by forcing users to Bittorent to find all their content.

iTunes is better with NBC (and all content), but hardly in trouble without NBC.

David Esrati
Fresh-Faced Recruit

Joined: Jun 1999

0

12/06, 11:02am | report spam | close Reply |
NBC- heard of TiVo?

The laughable thing- is that the computer illiterate people at NBC are still in the twilight zone thinking that they are in control. The people who downloaded shows on iTunes were doing it for convenience- and because the quality of the image, the ease of use was worth paying for. I've yet to see a Network site deliver anything near useful. As to the ads- only advertisers who want to be hated would make us sit through ads we may, or may not want to see. It's an opt-in, earned attention world- the networks better wake up- because we don't need them anymore... we can get content direct from the producers. TiVo allows us to skip ads- and if it was as easy as iTunes to download to our iPods- we would. Wake up NBC- the only one you're hurting is yourself.

boris_cleto
Fresh-Faced Recruit

Joined: Sep 2002

0

12/06, 11:02am | report spam | close Reply |
The sky is falling.

This is what the fifth or sixth time Forrester has said iTunes is dead?

Harlemite
Fresh-Faced Recruit

Joined: Aug 2007

0

12/06, 11:07am | report spam | close Reply |
Go Apple, Go!

Mr. McQuivey can say what he likes. Apple was looking out for the consumer on this one. It's hard for them to NOT come out shining in the eyes of the regular guy/girl in this matter.

"Let's see... Should I choose Apple, who's trying to keep prices reasonable..?"

"Or do I choose NBC who's trying to jack up prices and make more than they probably need..?"

That's a no-brainer.

And if they think Apple is gonna lose on this, then they're really missing a crucial point that was mentioned earlier: bit torrents. Folks are going to have what they will have. They are not going to pay more than they feel they should when there are other means of obtaining them. iTunes has proven that folks will pay a reasonable price for a digital product. However, when that digital product becomes more expensive than folks want to pay, they find other ways of obtaining it that NBC definitely doesn't like.

Is this really that tough to figure out?

eldarkus
Fresh-Faced Recruit

Joined: Feb 2004

0

12/06, 11:15am | report spam | close Reply |
Translate

while Apple charges low, frequently inflexible amounts for shows and movies, NBC wanted to experiment with bundles, and/or higher prices for premium content.

Now lets apply the Corporate Babelfish translator:

While Apple wants to help customers with standard pricing, we greedy f*cks at NBC feel we should be able to rip them off with price gouging and other techniques to get more from shows that were already making advertising dollars from. This allows us to fuel other c*** TV like "Fat people lose weight, Howie Mandell's soul patch and hot chicks with briefcases, Give Donald Trump even more money, Hicktown loves football & Bionic b******...

dennisobell
Fresh-Faced Recruit

Joined: May 2002

0

12/06, 11:16am | report spam | close Reply |
devil's advocate

I am rooting for Apple on this, but Forrester guy has a point here.

BitTorrent is great (it's how I get tons of my TV), but it's still far too complicated (AVI -> QT conversion, etc.) for the masses.

NBC's shows are low-rated by Nielsen, but they're heavily viewed by certain advertiser-friendly pockets, the kind who would pay for an 'Office' season pass at iTunes. Apple wants these users -- they're the sweet spot for them: laptop-buying, Apple-store-visiting, urban.

The Forrester guy's other apt point is that Apple needs TV to be a success at iTunes because it's the only use for the video capability that has taken off. The movie studios are continuing to stonewall Apple, and word is Apple is about to cave on pricing on full-length movies. A shame, but a reality.

ClevelandAdv
Fresh-Faced Recruit

Joined: Jul 2004

0

12/06, 11:18am | report spam | close Reply |
Angry MacGeek!

Disclaimer:The following content does not represent the views or opinions of the general public, only angry mac geeks (and not really all of them just the really angry ones).

NBC, the only video content I bought from iTunes was Battlestar Galactica. I will be using my EyeTV to record the new season, and will not buy it from anyone.

Since I own an iPod, iPhone and AppleTV, content sold that is incompatible with those devices is useless to me.

dennisobell
Fresh-Faced Recruit

Joined: May 2002

0

12/06, 11:19am | report spam | close Reply |
completing my thought

I don't think Apple should bend over and take NBC's BS (Jeff Zucker is a renowned prick; I often think the entire plot of '30 Rock' is a satire on him personally); and I am proud of Jobs et al. for standing up against iTunes price gouging.

But there should be a way for them to come to some compromise with NBC that lets both sides save face. It's just good business. Apple won the PR war; now they should take that victory and go back to the table with those NBC tools.

dliup
Fresh-Faced Recruit

Joined: Jan 2006

0

12/06, 11:27am | report spam | close Reply |
NBC will lose out

Perhaps the ONLY reason NBC's shows are semi-successful it's because they are on iTunes???

garmonbosia
Fresh-Faced Recruit

Joined: Aug 2002

0

12/06, 11:46am | report spam | close Reply |
pain and suffering

is what McQuivey must be feeling right now after Roughly Drafted's thorough b**** slapping of his foolish tool a**.

garmonbosia
Fresh-Faced Recruit

Joined: Aug 2002

0

12/06, 11:49am | report spam | close Reply |
hmmm

macnn blocked my link to roughlydrafted.com

Pennywigeon
Fresh-Faced Recruit

Joined: Oct 2007

0

12/06, 12:20pm | report spam | close Reply |
Ahh The Desperation

"Don't let the Macgeeks posting angry blogs against NBC fool you."

Ok, NBC said they only made $15 Million last year on downloads. Now they are giving it away for free. Apple makes a large majority of it's iTunes revenue off of music sales NOT video downloads.

What this is is a cry of desperation charading as a "report" by McQuivey. Basicllay it says this.

Look NBC screwed the pooch in their arrogance but in order to save their corporate face they need APPLE to get down on their knees and beg them to come back.

Apple makes Hardware, software, retail music, retail video download. NBC just makes content. Content fewer and fewer are interested in nowadays.

"Oh please, please let us come back and stiff Joe user with higher prices. Or we may lose or golf memberships and corporate cars."

Apple doesn't need NBC in order to make money. They ahve already proven that. But NBC needs Apple because so far all they have done is LOST more money they were making when they were available on iTunes. Steve Jobs knows in order to create a customer demand for money charged downloads that, (1) It needs to be commercial free. (2) Its price needs to be a bargain. (3) It needs to be convenient.

iTunes 3rd largest music retailer in the world, right behind Wal-Mart and Best Buy. What do the three have in common? Cheap and convenient.

NBC's arrogance will be there downfall. Hiring a "research firm" to create a report for a pity-me-party is just hilarious.

I guess McQuivey feels only "macgeeks" want cheaper prices. Of course everyone else wants to pay 4 times as much for NBC content because after all it is NBC content.

NBC wanted $4.99 instead of $1.99 for their content that was of lesser quality than store bought retail media.

THe peacock is looking more like a DoDo Bird everyday. LOL

NBC also has no clue about Steve Jobs and dealing with him. Does McQuivey think Steve Jobs Cares about NBC and their mediocre content especially when Apple's bread and butter is HARDWARE.

Out of touch is an understatement here.

horvatic
Fresh-Faced Recruit

Joined: Apr 2002

0

12/06, 12:36pm | report spam | close Reply |
More like a broken stub

His dull point is more like a broken stub. NBC needs iTunes not the other way around. People don't use NBC.com's free service because of the lousy commercials they include which iTunes DID NOT! I predict NBC will make a deal next year when they find themselves losing more money while Apple is still raking it in, not from iTunes store sales but from iPhone and iPod sales which is there main business anyway.

lkrupp
Fresh-Faced Recruit

Joined: May 2001

0

12/06, 12:58pm | report spam | close Reply |
Right

"Report: Apple needs NBC back, and quickly"

Bull$s***

dashiel
Fresh-Faced Recruit

Joined: Sep 2001

0

12/06, 01:02pm | report spam | close Reply |
wrong

apple has all the cards here. if nbc persists in their myopia apple will simply release a DVR update to appleTV - almost certainly an add-on based on patent apps from a few months back.

Rezzz
Fresh-Faced Recruit

Joined: Jan 2006

0

12/06, 01:25pm | report spam | close Reply |
oh, the irony..

�If they're spending time wondering how to own the customer, they're thinking about the wrong thing. With this much information available to consumers, owning the customer is not a reality.�

- James McQuivey

unity@mac.com
Fresh-Faced Recruit

Joined: Sep 2005

0

12/06, 01:26pm | report spam | close Reply |
hahah

IF iTunes was all about generating profits, then yes. But its not, Apples does not NEED NBC and they did not make much per TV show. They did fine before and will do fine now. However, NBC is loosing potential revenue since they got the bulk of the sale.

lkrupp
Fresh-Faced Recruit

Joined: May 2001

0

12/06, 01:47pm | report spam | close Reply |
Old school

We're more than a decade into the internet revolution and a lot of the old school businesses still don't get it. They don't understand that they now have little control of their once it gets on the web. They can't lock down all of those bits flying around cyberspace. The delivery method (read iPod) is just as important as the content, maybe more so.

The professors at the Harvard School of Business need to start teaching the realities of business in the 21st century.

bluenote1
Fresh-Faced Recruit

Joined: Sep 2005

0

12/06, 01:48pm | report spam | close Reply |
watching shows online

I don't know that either side needs each other as much as it's being claimed. There are a bunch of ways that people can get the content, and most provide NBC with revenue:

1. Scheduled on-air broadcasts 2. TiVo'd programs 3. Video store rentals 4. Online streaming with ads 5. Bit torrent 6. iTunes

I may be missing some, and I don't know where iTunes fits in with all of this (in terms of revenue provided to NBC). I'm thinking that their major source of revenue is the advertising dollars.

Sure, they're losing out on $1.99 for each customer that can't get their shows via iTunes, but I don't think that I'm going out on a limb by suggesting that most of those viewers really want to watch, and will turn to one of the other content delivery options to get their fix.

I know I do. Does that mean I should burn my iBook, iMac, and Apple stickers?

robttwo
Fresh-Faced Recruit

Joined: Nov 2005

0

12/06, 02:59pm | report spam | close Reply |
history!

Steve has a way of s******* over big corporate type that have attempted to s**** him. And he has a long memory. So far, he has ALWAYS had the last laugh. Ask Amelio, Scully, Eisner, etc......

Doofuses.

cblackmo
Fresh-Faced Recruit

Joined: Nov 2006

0

12/06, 03:02pm | report spam | close Reply |
McQuivey who?

Yeah, the double-digit jump in Apple stock since the NBC mutiny is clear proof that Apple really needs NBC programming.

And I love the way McQuivey glosses over waiting through unskippable commercials and unportable video streaming as an acceptable alternative to $2, downloadable, high-res videos that can be taken anywhere and watched anytime at leisure.

ChasmoeBrown
Fresh-Faced Recruit

Joined: Feb 2006

0

12/06, 03:50pm | report spam | close Reply |
Maybe not

I don't agree that iTunes "needs" NBC, but it sure could use NBC. Forrester seems to be overlooking a few things, like that Steve "owns" Disney, which owns ABC, ESPN and more which is all fodder for iTunes. For NBC, the hard-core fans of the shows are already set up to tape/Tivo if need be. What iTunes gives NBC is ADDED income, gravy, bank.

And it's NBC that needs to act quickly. The longer they let this go on, more and more of the rest of the fans will read and make use of postings telling them how to get their shows truly free. The truth is that the head ding-dong at NBC got his panties in a wad and so decided to get into a pissing contest with the head ding-dong at Apple, who lives for this sort of thing. The head ding-dong at NBC doesn't stand a chance. He needs to accept that the head ding-dong at Apple has that effect on everybody and go reread the story of the goose and the golden egg. NBC's shareholder ought to give this situation a hard look. It's obvious the people running the show haven't learned how to do business in the new age of bits and bytes. And I mean the very new age. Even the days of smply "put up a Web site and they will come" are 10 years past.

ChasmoeBrown
Fresh-Faced Recruit

Joined: Feb 2006

0

12/06, 03:52pm | report spam | close Reply |
But Then Again...

... what do we know? We're just a bunch of MacGeeks!

;-)

pt123
Fresh-Faced Recruit

Joined: Sep 2007

0

12/06, 04:19pm | report spam | close Reply |
nbc.com

I watched a show on NBC.com and it works for me. Free and bigger screen than an ipod. I am happy.

heavyboots
Fresh-Faced Recruit

Joined: Dec 2003

0

12/06, 05:08pm | report spam | close Reply |
iTunes Store...

... according to Steve is just another incentive to sell iPods. So unless Steve sees this drastically cutting into iPod sales, I doubt he's even slightly worried. And I'm not sure he's wrong.

If I miss a show, I usually view it by torrent. If I want to BUY a show, I'm going to go DVD every time. What is the point of buying into a DRM'd solution that you have to generate a manual back up of anyway?

BelugaShark
Fresh-Faced Recruit

Joined: Aug 2007

0

12/06, 07:03pm | report spam | close Reply |
NBC BS

NBC also wanted profit sharing from iPod sales claiming that their shows increased iPod sales. What a crock o s***.

Rot in h*** NBC, no one cares, if we can't find something on iTunes we can find it on YouTube or bittorrent.

ff11
Fresh-Faced Recruit

Joined: Apr 2004

0

12/06, 11:32pm | report spam | close Reply |
Interesting article

He argues that Apple should give in to NBC, and increase it's prices on NBC content. To justify his position, he points out that NBC won't face a backlash from viewers in this battle, because they already make their content available for free on their web site.

What he fails to explain is why iTunes customers would tolerate price increases for a product that is available for free elsewhere.

ciphun
Fresh-Faced Recruit

Joined: Jul 2000

0

12/08, 09:33am | report spam | close Reply |
only 1 decent show,mcntx?

LOL, you obviously have poor taste. period. While the office is a funny show, the fact that you think that is the only decent show on NBC means that you have a lack of understanding what quality truly is.

take care.

telemart73
Fresh-Faced Recruit

Joined: Nov 2001

0

12/11, 03:00pm | report spam | close Reply |
thank you, Usenet

I used to subscribe to 30 Rock and religiously bought Battlestar from iTunes. Now I just get them from the trusty newsgroups I previously used. Thank you, NBC, for saving me hundreds of dollars!

Show More Comments

Login Here

toggle

Network Headlines

02/14	Fresh rumors surface of Apple testing...
02/13	AAPL closes above $500, sets new all...
02/13	Apple to audio webcast Cook's speech...
02/13	Apple launches 2012 back-to-school...
02/13	Apple looking to 'quadruple' India...

Show All

02/14	Fresh rumors surface of Apple testing...
02/13	Apple takes top spot from Google in...
02/13	EU clears Google buyout of Motorola
02/13	VLC 2.0 to get Blu-ray support in OS...
02/13	Sony Music caught inflating price for...

Show All

02/13	Apple launches 2012 back-to-school...
02/13	Sony Music caught inflating price for...
02/09	Apple explores environment-sensitive...
02/08	Paul McCartney to perform live concert...
02/06	Microsoft prepping Dynamics CRM apps...

Show All

02/13	Refurb. Flip UltraHD Pocket Digital...
02/10	$380 off refurbished 2.8GHz Mac Pro...
02/09	iHome Dual Alarm Clock for Apple iPod...
02/08	Save 69% on SanDisk Cruzer 32GB USB...
02/07	Refurb. Olympus 14MP Digital Camera...

Show All

toggle

Report: Apple needs NBC back, and quickly

updated 10:40 am EST, Thu December 6, 2007

Report: Apple needs NBC

Related Articles

Recent Articles

Please...

NBC is a PIG

Same here

yeah...

Can you say Bittorrent?

NBC- heard of TiVo?

The sky is falling.

Go Apple, Go!

Translate

devil's advocate

Angry MacGeek!

completing my thought

NBC will lose out

pain and suffering

hmmm

Ahh The Desperation

More like a broken stub

Right

wrong

oh, the irony..

hahah

Old school

watching shows online

history!

McQuivey who?

Maybe not

But Then Again...

nbc.com

iTunes Store...

NBC BS

Interesting article

only 1 decent show,mcntx?

thank you, Usenet

Login Here

Register for our weekly email newsletter:

Connect tools:

Subscribe

to our RSS

Follow us

on Twitter

10 Most Read

10 Most Discussed

MacNN Marketplace